Thinking about opening or relocating your business to Morgan Hill? Let us help you get started on the right foot!
Thinking about opening or relocating your business to Morgan Hill? Let us help you get started on the right foot!
Whether you are opening a retail shop, restaurant, dental office or manufacturing facility, you need to know your land use code and corresponding zoning district in order to identify the locations where your business is approved to operate.
Search the Morgan Hill Municipal Code to determine which land use definition your business falls under.
example: if you are a dental provider, typing “dental office” in the search bar will route you to a page with the description of a dental office use and its classification under “public and quasi-public use.”
Determine which zoning your business use is permitted in.
example: typing “public and quasi-public use” in the search bar will provide you with links to various land use regulation tables from residential, to commercial, to open space, identifying which zoning supports your business use.
Find the address of your preferred location on the Zoning Map to determine the zoning of the area and whether your business use is permitted, conditional or prohibited.
Need help finding a location or double checking your preferred location’s zoning? Connect with our team HERE.
Title 18.14 of the Municipal Code provides a description and map of the City’s various Zoning Districts.
Titles 18.22-18.29 of the Municipal Code provides a table showing specific business uses within specific Zoning Districts
If your business requires a use permit to operate in a location, additional time and fees will apply. If you are planning to locate your business in a space where another like-business is not already operating (ex- a restaurant moving into a prior retail location) Impact Fees will mostly likely apply.
Administrative Use Permits (AUPs) require approval from the Development Services Director, cost approximately $9K, and take approximately three months to process.
Conditional Use Permits (CUPs) require approval from the Planning Commission, cost approximately $14K, and take approximately six months to process.
Submitting an application for an AUP or CUP does not guarantee approval.
Impact Fees offset the future financial impact of enhanced public infrastructure resulting from new development and/or a change in business use. Impact Fees are calculated and due at building permit issuance.
The City of Morgan Hill’s Engineering Land Development Department can create an estimate for your project for a $371 fee. Impact Fees are updated twice yearly. Final impact fees may vary from the estimate.
The City offers two impact fee programs to support businesses and developers: Impact Fee Freeze and Traffic and Sewer Impact Fee Financing.
Meet with a Planner to double check your business use and zoning research or discuss the cost of a permit for tenant improvements with the building department.
Exterior modifications to a building, for example: constructing a new building, adding an addition, adding windows, will require a Planning Permit. Exterior installation or modification of business signage will require a Sign Permit.
Interior modifications within a building for example: changing lighting, HVAC, plumbing fixtures, adding/removing walls will require a building permit at minimum.
If your business is defined as one of the following, you will need to secure an additional permit from the Morgan Hill Police Department prior to your business license being issued by HdL Companies. For more information contact license-permits@morganhill.ca.gov.
Operating a commercial kennel, private kennel, pet shop, pet grooming parlor, animal menagerie, animal shelter, or horse establishment within the City of Morgan Hill will require an Animal Establishment/Kennel Permit. Start your Animal Establishment/Kennel Permit HERE.
In April 2024, the City Council of the City of Morgan Hill repealed and replaced the Morgan Hill Municipal Code Chapter 5.32, Massage Establishments, of Title 5 to amend the permitting procedure for establishments providing massage therapy services. Start your Massage Establishment Permit Application HERE.
Owners of a taxicab business and/or drivers operating a taxicab on the streets of the City of Morgan Hill for the purpose of providing transportation services will require a Taxicab Permit. Start your Taxicab Company Permit HERE or Taxicab Driver Permit HERE.
Any type of live music, entertainment, and/or dancing in a restaurant, nightclub, bar or establishment within the City of Morgan Hill where food and/or alcoholic beverages are served, and which is open to the public, will require a Live Entertainment Permit. Start your Live Entertainment Permit HERE.
Morgan Hill business license fees vary depending on the type of business and location.
One-time fees charged for processing a new business license application include an application review fee and a zoning permit fee.
A set fee based on the type of business and location is applied, in addition to a fee per all part-time or full-time employees over two people.
Business classifications and rates can be reviewed in the Business License Ordinance.
A rate schedule for the most common classifications can be found HERE.
The City of Morgan Hill has contracted with HdL Companies to provide all business licensing needs. HdL services are available through the phone, online, and by mail.
An application must be submitted, and fees must be paid prior to the commencement of business operations.
Visit the Business License Tutorial HERE.
Start your business license application HERE.
When a business changes location, owners, or service structure, a new license application must be submitted.
Renew, pay, or close a Morgan Hill business license HERE.
Below are some of the most frequently asked questions by potential business operators as it relates to the business license process:
-Do I need a business license if I am a contractor working on a job in Morgan Hill?
-There are other businesses like mine at an address, why can’t I go there too?
-I already have a business license in another City, why do I need one in MH?
-Why do I need to pay for a new business license if I already have one but need to relocate my business to another address?
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